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Footballfirst

Both Celtic and Falkirk posted their accounts for 2019/20 today.

 

Celtic's in particular shows a significant impact of the premature end to the season.

 

Celtics trading annual results advised to the stock exchange

Financial Highlights
·    Group revenue decreased by 15.8% to £70.2m (2019: £83.4m)
·    Operating expenses including labour decreased by 7.3% to £80.5m (2019: £86.9m)
·    Gain on sale of player registrations of £24.2m (2019: £17.7m)
·    Acquisition of player registrations of £20.7m (2019: £6.2m  
·    Profit before taxation of £0.1m (2019: £11.3m)
·    Year-end cash net of bank borrowings of £18.2m (2019: £28.6m)

 

It’s not an unexpected set of accounts with revenue down, cash in the bank down and that despite £24m incoming from transfers.

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2 minutes ago, Footballfirst said:

Both Celtic and Falkirk posted their accounts for 2019/20 today.

 

Celtic's in particular shows a significant impact of the premature end to the season.

 

Celtics trading annual results advised to the stock exchange

Financial Highlights
·    Group revenue decreased by 15.8% to £70.2m (2019: £83.4m)
·    Operating expenses including labour decreased by 7.3% to £80.5m (2019: £86.9m)
·    Gain on sale of player registrations of £24.2m (2019: £17.7m)
·    Acquisition of player registrations of £20.7m (2019: £6.2m  
·    Profit before taxation of £0.1m (2019: £11.3m)
·    Year-end cash net of bank borrowings of £18.2m (2019: £28.6m)

 

It’s not an unexpected set of accounts with revenue down, cash in the bank down and that despite £24m incoming from transfers.

Losing out on the Champions League money , reportedly between £ 25 and £30 million will have an even greater impact although that won't be in these accounts. 

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Footballfirst

From the Celtic report

https://www.londonstockexchange.com/news-article/CCP/results-for-the-year-ended-30-june-2020/14732713

 

Current liabilities                   2020        2019 

Trade and other payables     20,744     13,957

Lease liabilities                            604       –

Borrowings                                  1,364     1,364

Provisions                                   5,942      3,479

Deferred income                      21,275    25,614

Totals                                        49,929     44,414

 

Looking at the above figures I was trying to work out the ongoing liabilities for deferred wages.  I don’t know if it will be included in the £6.8m increase in Trade and Other Payables, or in the £2.5m increase in Provisions.

The drop in deferred income suggests a fall of £4.2m in Season Ticket revenue.

Edited by Footballfirst
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2 minutes ago, Footballfirst said:

Falkirk's accounts look pretty decent.

 

 

 

Very surprised at that given their recent issues. Have I missed anything obvious as to why their fortunes have changed so much?

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Footballfirst

I also note that Celtic has increased it's borrowing facility (not used at the moment) just in case.

 

"Post year end we also took the opportunity to increase our existing revolving credit facility from £2m to £13m to provide a further buffer should it ever be required"

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8 minutes ago, Kidd’s Boots said:

Even tougher times ahead and they won't be immune

The more expensive the squad the more expensive the wages. It'll hit the OF more than many other clubs.

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Smith's right boot
2 minutes ago, David Black said:

The more expensive the squad the more expensive the wages. It'll hit the OF more than many other clubs.

 

 

Celtic and rangers in a study relied on % of match day revenue the most in Europe. 

Bigger teams in smaller  leagues are harder hit. 

The TV money particularly for the of is pretty insignificant. 

Porto, sporting, ajax, psv amongst others were all named on the report as high risk as well. 

 

 

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Footballfirst
9 minutes ago, Gone said:

 

Very surprised at that given their recent issues. Have I missed anything obvious as to why their fortunes have changed so much?

There is nothing in their accounts that looks particularly negative.   They took out a Government backed loan of £50k but that's about it.

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5 minutes ago, Smith's right boot said:

 

 

Celtic and rangers in a study relied on % of match day revenue the most in Europe. 

Bigger teams in smaller  leagues are harder hit. 

The TV money particularly for the of is pretty insignificant. 

Porto, sporting, ajax, psv amongst others were all named on the report as high risk as well. 

 

 

Where is that report?

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Smith's right boot
1 minute ago, David Black said:

Where is that report?

 

 

I read it a while back, right at the start. Type random stuff in the search engine and I'm sure it will appear. 

 

Lots of English championship clubs mentioned as well. 

 

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3 minutes ago, Smith's right boot said:

 

 

I read it a while back, right at the start. Type random stuff in the search engine and I'm sure it will appear. 

 

Lots of English championship clubs mentioned as well. 

 

Ok thanks .

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Footballfirst
13 minutes ago, Smith's right boot said:

 

 

I read it a while back, right at the start. Type random stuff in the search engine and I'm sure it will appear. 

 

Lots of English championship clubs mentioned as well. 

 

Seems to be available here, but needs a subscription.  Celtic and Rangers mentioned in the preamble though.

 

https://offthepitch.com/a/matchday-income-analysis-big-european-clubs-among-those-hit-hardest

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Pasquale for King
48 minutes ago, David Black said:

Losing out on the Champions League money , reportedly between £ 25 and £30 million will have an even greater impact although that won't be in these accounts. 

No income from player sales either that brought in over £40 million the two years before. Sacking a manager and changing the squad would impact on it too, what a ****ing shame 😆😂

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Kidd’s Boots
56 minutes ago, David Black said:

The more expensive the squad the more expensive the wages. It'll hit the OF more than many other clubs.

Their outside commercial activities will soften the blow compared to smaller clubs, but your right, salaries linked to income will be a key to compare next year

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Seymour M Hersh
32 minutes ago, Footballfirst said:

Seems to be available here, but needs a subscription.  Celtic and Rangers mentioned in the preamble though.

 

https://offthepitch.com/a/matchday-income-analysis-big-european-clubs-among-those-hit-hardest

 

Any chance of a cut & paiste? Can't be bothered signing up only to have to deal with spam for god knows how long. 

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Footballfirst
2 minutes ago, Seymour M Hersh said:

 

Any chance of a cut & paiste? Can't be bothered signing up only to have to deal with spam for god knows how long. 

I have no intention of signing up either.

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Smith's right boot
1 hour ago, Gone said:

 

Very surprised at that given their recent issues. Have I missed anything obvious as to why their fortunes have changed so much?

 

1 hour ago, Footballfirst said:

Seems to be available here, but needs a subscription.  Celtic and Rangers mentioned in the preamble though.

 

https://offthepitch.com/a/matchday-income-analysis-big-european-clubs-among-those-hit-hardest

 

 

Yeah, mentioned that right at the start of this covid caper, clubs with larger crowds especially if not in a massive TV deal type league are going to be trouble. 

 

The initial st injection will have helped at the start, but as it drags out they will be hit hard. 

Meanwhile clubs like Hamilton will be fine - cracking stuff. 

Being shit, having a plastic pitch and no fans means a club like that will hardly  feel it. 

Bournemouth for example take less than 10% ( might have Ben 5%)of total revenue from match day income, rangers and celtic were near 50 %. 

 

Relative to Scotland Aberdeen, us and hibs will feel it as well but Aberdeen and ourselves have owners with a vested interest in the clubs, not sure hibs do. 

 

English championship teams, many debt heavy will also be in for a fun time. 

Edited by Smith's right boot
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Falkirk is a funny one cause I believe Alan Gow now owns about 26% of them. I think we will see a few other ex academy grads buy into Falkirk over the next year or so. Think he gained a controlling share after the Indian group he brought to the clubs potential buy out fell through. He has quietly went around buying up little %’s here and there to own enough to block any future selling of the club etc. 

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2 hours ago, Footballfirst said:

There is nothing in their accounts that looks particularly negative.   They took out a Government backed loan of £50k but that's about it.

They may have received a fee from an add on clause when Will Vaulks moved from Rotherham to Cardiff for a Rotherham club record fee...monies may be included in this set of figures.

 

Cardiff City are set to make Wales and Rotherham midfielder Will Vaulks their first signing of the summer.

The clubs have agreed a fee and expect to complete the deal next week.

Vaulks' former club Falkirk will receive a sell-on fee as part of the deal that saw him join Rotherham from Scotland in 2016.

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1 hour ago, busby1985 said:

Falkirk is a funny one cause I believe Alan Gow now owns about 26% of them. I think we will see a few other ex academy grads buy into Falkirk over the next year or so. Think he gained a controlling share after the Indian group he brought to the clubs potential buy out fell through. He has quietly went around buying up little %’s here and there to own enough to block any future selling of the club etc. 

Post year end in September 2020 Phil Rawlins - former Stoke City and Orlando City director - and his partner/wife also bought in with a six figure investment for 26% shareholding. This value won't be reflected until the next set of accounts but it seems they are starting to pull themselves together given the complete bombscare they have been for the last few years.

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14 hours ago, Footballfirst said:

From the Celtic report

https://www.londonstockexchange.com/news-article/CCP/results-for-the-year-ended-30-june-2020/14732713

 

Current liabilities                   2020        2019 

Trade and other payables     20,744     13,957

Lease liabilities                            604       –

Borrowings                                  1,364     1,364

Provisions                                   5,942      3,479

Deferred income                      21,275    25,614

Totals                                        49,929     44,414

 

Looking at the above figures I was trying to work out the ongoing liabilities for deferred wages.  I don’t know if it will be included in the £6.8m increase in Trade and Other Payables, or in the £2.5m increase in Provisions.

The drop in deferred income suggests a fall of £4.2m in Season Ticket revenue.

It will be in Trade & Other Payables. Provisions are liabilities which are known but not yet due ie some taxes or probable but estimated ie outstanding legal cases you are advised you may lose. Since footballers' wages are direct costs they would go into trade and other payables

Edited by Spellczech
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Hagar the Horrible
53 minutes ago, Spellczech said:

It will be in Trade & Other Payables. Provisions are liabilities which are known but not yet due ie some taxes or probable but estimated ie outstanding legal cases you are advised you may lose. Since footballers' wages are direct costs they would go into trade and other payables

The legal case is a funny one, I have already came of a ban for this, but keeping it clean, I will say its all riding on 1 test case, which the paper work is in status for a further 20.  It would be prudent for Celtic to save up for the worst case in this scenario, which to be fair they have.  If the case goes in the favour of the club, then they are in a great possition, but if it goes for the SURVIVORS,  then after these 21 get their day, no doubt it will open the floodgates for other survivors to be brave enough to come forward.   But as there is an outstanding court case, lets leave the if and buts until afterwards.

 

They have budgeted for CL money, which to be fair also, there is 2 spots this season as insurance if they dont do 9.7IAR.  Sadly they are one club that has catered for a rainy day.

 

Cant wait to see DU and Hibs, the former went all in to win promotion

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Ex member of the SaS

Ok I admit I am thick, and no accountant, But does Celtic's account read:   Profit before taxation of £0.1m (2019: £11.3m)

 

OK my take is they made £100,000 BEFORE tax whereas they made £11.3 million last year.

 

If I am right does this not mean that after tax they made a huge loss?

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9 minutes ago, Ex member of the SaS said:

Ok I admit I am thick, and no accountant, But does Celtic's account read:   Profit before taxation of £0.1m (2019: £11.3m)

 

OK my take is they made £100,000 BEFORE tax whereas they made £11.3 million last year.

 

If I am right does this not mean that after tax they made a huge loss?

 

Do companies not just pay tax on profits?

 

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1 minute ago, graygo said:

 

Do companies not just pay tax on profits?

 

It will depend on previous loses, if any, that they can offset this years tax against. It’s a total nightmare for a layman to work out. 

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Ex member of the SaS
4 minutes ago, Heartsofgold said:

It will depend on previous loses, if any, that they can offset this years tax against. It’s a total nightmare for a layman to work out. 

Thanks , you have just given this layman a way out! 😉

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23 minutes ago, Ex member of the SaS said:

Thanks , you have just given this layman a way out! 😉

Always happy to help😁

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19 hours ago, Gone said:

 

Very surprised at that given their recent issues. Have I missed anything obvious as to why their fortunes have changed so much?

They seem to have cut their staff a fair bit (players included) compared to previous year.  They closed their academy a couple of years ago (quite controversially) - so that will account for some reduction of coaches/admin etc.   Good to see them weathering the storm reasonably well after their fall into L1 - hopefully a promotion on the way this season.  

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Footballfirst
On 26/10/2020 at 18:52, busby1985 said:

Falkirk is a funny one cause I believe Alan Gow now owns about 26% of them. I think we will see a few other ex academy grads buy into Falkirk over the next year or so. Think he gained a controlling share after the Indian group he brought to the clubs potential buy out fell through. He has quietly went around buying up little %’s here and there to own enough to block any future selling of the club etc. 

Looks like Allan Gow's departure today could be connected with him fronting a bid for the club.

 

https://www.falkirkfc.co.uk/2020/11/02/club-statement-17/

 

Alan Gow departs Club

Falkirk Football Club and Alan Gow have reached an agreement that will see the former player leave his position as Head of Football Operations.

Chairman Gary Deans said:

“Alan has only been in position for a short period of time, but has decided to pursue other opportunities open to him.  We have agreed to part ways and thank Alan for his work and wish him well.”

“As a club we recognise the need for a Head of Football Operations as we rebuild for the long term success we all desire. We will embark on a new recruitment process in due course.”

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Hagar the Horrible
13 minutes ago, Mikey1874 said:

C'mon on Dundee United. Get that multi £million loss public. 

You have to ask, did Robbie see the writing on the wall?  The absent owner left the kids with an empty and the credit card and the kids threw a massive party.  That was even before paying for Shankland and Mellon.  Robbie got out before their dad came home and went radge

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Maroon tinted glasses 2

Without sounding too thick, but I thought the annual accounts were based on the financial year unless its different for footy, however, if it is based on the "normal" financial year then the leagues were called after the end of 19/20 accounting year and therefor the covid impact is yet to be reported. 

 

If its reported as per the season then again its only going to be a drop in the ocean compared to 20/21 considering all teams also need to cover costs during the closed season.

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51 minutes ago, Maroon tinted glasses 2 said:

Without sounding too thick, but I thought the annual accounts were based on the financial year unless its different for footy, however, if it is based on the "normal" financial year then the leagues were called after the end of 19/20 accounting year and therefor the covid impact is yet to be reported. 

 

If its reported as per the season then again its only going to be a drop in the ocean compared to 20/21 considering all teams also need to cover costs during the closed season.

Not sure of full details (UEFA SFA requirements etc) but think the accounts have to include the prior season. Therefore I think most clubs financial year ends 30th June. However it might be possible that financial years ending 31st May, 31st July might also be compliant .... but not sure ..

 

PS I seem to remember in the Romanov era one Hearts financial year was 11 months, can’t remember if that was preceded by a 13 month year or not

Edited by Jambo-Fox
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Footballfirst
1 hour ago, Jambo-Fox said:

Not sure of full details (UEFA SFA requirements etc) but think the accounts have to include the prior season. Therefore I think most clubs financial year ends 30th June. However it might be possible that financial years ending 31st May, 31st July might also be compliant .... but not sure ..

 

PS I seem to remember in the Romanov era one Hearts financial year was 11 months, can’t remember if that was preceded by a 13 month year or not

There is no requirement for football clubs to fix their year ends to match the season, however it is convenient for them in terms of separating one season's business with the next.  UEFA do require certain reports for licensing purposes, e.g.  If your year end is 30 June, then they require an interim report as at 31 December for the licensing cycle that starts at 31 March for the following season. Those interim reports may or may not be made public.

 

The 11 months / 13 months occurred when Hearts moved their year end from 31 July to 30 June

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3 hours ago, Footballfirst said:

There is no requirement for football clubs to fix their year ends to match the season, however it is convenient for them in terms of separating one season's business with the next.  UEFA do require certain reports for licensing purposes, e.g.  If your year end is 30 June, then they require an interim report as at 31 December for the licensing cycle that starts at 31 March for the following season. Those interim reports may or may not be made public.

 

The 11 months / 13 months occurred when Hearts moved their year end from 31 July to 30 June

Thanks - your financial Football knowledge  is First class!

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Maroon tinted glasses 2
16 hours ago, Jambo-Fox said:

Not sure of full details (UEFA SFA requirements etc) but think the accounts have to include the prior season. Therefore I think most clubs financial year ends 30th June. However it might be possible that financial years ending 31st May, 31st July might also be compliant .... but not sure ..

 

PS I seem to remember in the Romanov era one Hearts financial year was 11 months, can’t remember if that was preceded by a 13 month year or not

Thanks, I wasn't sure as I always work to the April deadlines.

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  • 3 weeks later...
Smith's right boot
23 minutes ago, Footballfirst said:

Aberdeen has just published their accounts. They don't make good reading for last season, nor is the outlook good for this one. A £2.9m loss last season and a further £5m loss forecast for this season.  And see the Wages/Turnover ration climb.

 

https://www.afc.co.uk/2020/11/20/2019-20-financial-update/

 

AFC_FinancialSummary-1024x512.png

 

Most clubs will show this trend I think. 

 

Clubs will need supported from their owners to get through this or sell an asset. 

 

Rangers have sold more shares, Celtic have decent cash reserves, both could probably sell a player if need be as well.

Aberdeen and ourselves have owners that imo won't see the club go under. Aberdeen might sell a player as well. 

Motherwell and livi recently sold a player for a decent wedge, as did we. 

 

Clubs like hibs, Killie, the Dundee clubs must be in the shite. No one wants their shares, their owners have no vested interest and there are no big player assets to sell. 

 

Interesting to see how things play out. 

Edited by Smith's right boot
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Footballfirst

Just to upset Dave Cormack, with his desperation to get fans back, just a little bit more.

 

 

Edited by Footballfirst
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48 minutes ago, Footballfirst said:

Aberdeen has just published their accounts. They don't make good reading for last season, nor is the outlook good for this one. A £2.9m loss last season and a further £5m loss forecast for this season.  And see the Wages/Turnover ration climb.

 

https://www.afc.co.uk/2020/11/20/2019-20-financial-update/

 

AFC_FinancialSummary-1024x512.png

 

I beg to differ.

 

giphy.gif

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loveofthegame

Aberdeen just sold McKenna for £3m which I assume hasn't been taken into account for any of those numbers and have a few other players who are probably fairly valuable assets (Ferguson, Cosgrove and McCrorie in particular).

 

Far from ideal for them but sure they'll be fine.

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